Stocks Mixed as Investors Weigh Trade Prospects: Markets Wrap




 

(Bloomberg) -- European stocks sank and U.S. equity futures edged lower while Asian shares rose broadly as investors digested signs of progress in U.S.-China trade negotiations. European bonds advanced.

Mining and banking shares led Monday's decline in the Stoxx Europe 600 index after the gauge jumped the most since January on Friday. Equities climbed from Sydney to Hong Kong, helping sustain a rally in emerging-market assets, after President Donald Trump said the two sides agreed to the outlines of a partial deal that could be signed as early as next month. S&P 500 futures turned lower, signaling the U.S. equities gauge may struggle for gains after rising to within 1.8% of a record close Friday.

The yuan advanced for a fourth day offshore. Treasury futures climbed, with the market for cash bonds closed for American and Japanese holidays.

The limited agreement outlined by China and the U.S. kept prospects alive for a comprehensive trade deal and provided an initial boost to risk assets, though skepticism continues to cloud markets and the outlook for global growth. Beijing will make large agricultural purchases and take steps on intellectual property, financial services and the yuan. A Chinese statement didn't refer to a deal, saying only that "the two sides have made substantial progress."

"Let's not get carried away," said Raoul Leering, head of international trade research at ING Bank NV. "There is a very tough journey ahead for the U.S. and Chinese negotiators to cut a deal that really has substance."

China's exports and imports shrank more than expected in September, as existing U.S. tariffs and the ongoing slowdown in global trade combined to undercut demand. Focus will soon turn to earnings season that begins with big U.S. banks including JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley.

Elsewhere, the pound retreated after rocketing for the past two sessions as European Union negotiators warned that Brexit plans from U.K. Prime Minister Boris Johnson are not yet good enough to be the basis for an agreement. Turkey's stock market and currency fell as the U.S. and Europe increased threats to impose sanctions over the incursion into Syria. And crude oil dropped after surging the most in almost a month on Friday.

Here are some key events coming up this week:

The International Monetary Fund and World Bank host meetings to discuss economic development and finance.St. Louis Fed President James Bullard speaks at Bloomberg's monetary and financial policy conference in London. Riksbank Governor Stefan Ingves also speaks there. Atlanta Fed President Raphael Bostic speaks in Atlanta. San Francisco Fed President Mary Daly gives a speech in Los Angeles.Wednesday brings a monetary policy decision in South Korea.U.S. retail sales are forecast to increase for a seventh straight month. Sales in the "control group" are also expected to rise. Consumer spending is carrying the weight of U.S. economic growth so the data will be monitored closely for any signs of slowing.China releases third-quarter GDP, September industrial production and retail sales data on Friday.

Here are the main moves in markets:

Stocks

The Stoxx Europe 600 Index declined 0.7% as of 9:32 a.m. London time.Futures on the S&P 500 Index fell 0.1%.Germany's DAX Index dipped 0.6%.The U.K.'s FTSE 100 Index decreased 0.4%.

Currencies

The Bloomberg Dollar Spot Index advanced 0.2%.The British pound sank 0.8% to $1.2572.The euro dipped 0.2% to $1.1025.The offshore yuan strengthened 0.2% to 7.0699 per dollar.

Bonds

Germany's 10-year yield fell three basis points to -0.47%.Britain's 10-year yield sank seven basis points to 0.634%.Spain's 10-year yield sank four basis points to 0.198%.

Commodities

West Texas Intermediate crude decreased 0.9% to $54.21 a barrel.Gold advanced 0.1% to $1,489.83 an ounce.Iron ore sank 1.7% to $86.90 per metric ton.Carbon-emissions contracts declined 2.2% to 23.91 euros per ton.

--With assistance from Sophie Caronello, Mark Tannenbaum and Adam Haigh.

To contact the reporter on this story: Todd White in Madrid at twhite2@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Robert Brand

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

COMMENTS

More Related News

2020 election updates: COVID-19 stimulus talks find life, Trump and Biden campaign after first debate, Amy Coney Barrett meets with senators
2020 election updates: COVID-19 stimulus talks find life, Trump and Biden campaign after first debate, Amy Coney Barrett meets with senators

Trump signed a bill early Thursday to avert a government shutdown, stimulus talks continue and Biden and Trump campaign after the first debate.

Right-Wing Trumpist News Site Busted as Putin Troll Farm Operation
Right-Wing Trumpist News Site Busted as Putin Troll Farm Operation
  • World
  • 2020-10-01 13:27:24Z

At first glance-with headlines such as "Sleepy Joe Set Politics Back 180 Years," "BLM Body Count," and "Trump Paid Zero Taxes? Good for Him"-it doesn't look much different from hundreds of other Trumpist news sites that rage against Democrats and the elitist mainstream media.But the clunkily titled "Newsroom for American and European Based Citizens," or NAEBC, was on Thursday exposed as a Russian front reportedly linked to the Internet Research Agency-the Kremlin-backed troll farm behind much of the interference in the 2016 U.S. election. There were some warning signs: NAEBC appears to be a pun on a Russian word meaning to "screw over," and its slogan tells readers: "Don't get yourself...

Will German Americans again put Donald Trump over the top in the presidential election?
Will German Americans again put Donald Trump over the top in the presidential election?
  • World
  • 2020-10-01 12:25:21Z

German Americans paved Donald Trump's road into the White House in 2016 through Iowa, Wisconsin, Michigan, Ohio and Pennsylvania. This ethnic group barely receives attention in American media and politics.The Midwest, home to many German Americans, is a battleground for the 2020 presidential election. Will this inconspicuous group yet again cast the deciding votes in the upcoming election? The German American experienceForty-four million Americans claim German ancestry. They constitute a large white heritage group in the United States, and the largest by far in the Midwest. Between 1850 and 1890, Germans arrived in the millions to settle in the U.S. German American farmers and workers...

Election 2020 Today: Voters cringe after debate, race issue
Election 2020 Today: Voters cringe after debate, race issue
  • World
  • 2020-10-01 11:49:11Z

'IT WAS SAD': While President Donald Trump and Democrat Joe Biden debated, Americans cringed. PROUD BOYS: Trump tried to walk back his refusal to outright condemn the far right fascist group during the debate, but the inflammatory moment was far from the first time the president has failed to denounce white supremacists or has advanced racist ideas. It was an echo of the way he had blamed "both sides" for the 2017 violence between white supremacists and anti-racist protesters in Charlottesville, Virginia.

Proud Boys say they are
Proud Boys say they are 'standing down and standing by' after Trump's debate callout

On their account on the social media app Telegram, the Proud Boys appeared to take the statement as marching orders.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy